You can't make the parent form from a child form the parent need to come before the child. Use this instead.
private void buttonFormActivator_Click(object sender, EventArgs e)
{
Form MyMdiParentForm = new Form();
Form MyNewMdiChildForm = new Form();
MyMdiParentForm.IsMdiContainer = true;
MyNewMdiChildForm.MdiParent = MyMdiParentForm;
MyMdiParentForm.Show();
MyNewMdiChildForm.Show();
this.Hide();
}